Co-operative Group in crisis after chief executive issues resignation

The Co-operative Group was thrown back into crisis today after its chief executive quit the "ungovernable" group in the wake of a meltdown in boardroom relations.

The firm accepted Euan Sutherland's resignation after he blamed "an individual, or individuals, determined to undermine me personally" by revealing details of his £3.66 million pay deal to a Sunday newspaper.

Chief financial officer Richard Pennycook has been appointed as interim chief executive.

Mr Sutherland's departure after less than a year at the helm leaves the Co-op without a permanent boss and facing the biggest governance overhaul in its history.

In an emergency call last night following Mr Sutherland's resignation, the board agreed to be abolished in favour of a new "plc" style board including only executive and non-executive directors, responsible for taking commercial decisions.

It is understood the move came after former City minister and new board member Lord Myners brought forward details of his governance review - not due to be announced until next month.